TURNOVER AT Sligo-headquartered co-operative Connacht Gold rose 16 per cent last year to €345 million, driven by a strong performance from its dairy ingredients business.
The results, which do not include revenue from Donegal Creameries’ milk and retail operations, acquired by Connacht Gold late last year, show that operating profit increased slightly to €3.29 million, compared with €3.24 million in 2010.
Chief executive Aaron Forde said that, while the increase in operating profit was “modest”, it reflected the fact that the co-op pays a strong price to its suppliers.
He predicted a softening of milk prices by the end of this year. “Internationally, milk supply has grown ahead of demand. Demand, which has held up well considering, has grown by about 2 per cent, while supply has grown by about 4 per cent.”
Connacht Gold acquired the milk and retail businesses of Donegal Creameries last year in a deal worth about €14 million. It now employs 730 people. Mr Forde said the integration was “progressing well”.
He said the co-op, which operates three dairy-processing facilities, had the capacity to process an additional 10-15 per cent of milk following the abolition of milk quotas in 2015. However, he said Connacht Gold, which already works with other co-ops, including Glanbia, was open to discussions with other processors about further collaboration.
According to the 2011 results, the volume of milk processed at the co-op’s dairy ingredients business increased by 20 per cent last year. Together with strong milk pricing, this led to a 40 per cent increase in sales to €83.5 million.
Connacht Gold exports milk powder products to Africa, the Middle East and the Far East through the Irish Dairy Board.
Its consumer foods division, which includes the Connacht Gold butter ranges, increased by 10 per cent to just under €46 million.
The co-op’s agribusiness and livestock sales business also had a strong year, with turnover from its mart business rising 30 per cent.
